US Laws, Codes, Statutes & Cases

399.  (a) This article shall be known, and may be cited, as the
Reliable Electric Service Investments Act.
   (b) The Legislature finds and declares that safe, reliable
electric service is of utmost importance to the citizens of this
state, and its economy.
   (c) The Legislature further finds and declares that in order to
ensure that the citizens of this state continue to receive safe,
reliable, affordable, and environmentally sustainable electric
service, it is essential that prudent investments continue to be made
in all of the following areas:
   (1) To protect the integrity of the electric distribution grid.
   (2) To ensure an adequately sized and trained utility workforce.
   (3) To ensure cost-effective energy efficiency improvements.
   (4) To achieve a sustainable supply of renewable energy.
   (5) To advance public interest research, development and
demonstration programs not adequately provided by competitive and
regulated markets.
   (d) It is the intent of the Legislature to reaffirm, without
requiring revision, California's doctrine, as reflected in regulatory
and judicial decisions, regarding electrical corporations'
reasonable opportunity to recover costs and investments associated
with their electric distribution grid and the reasonable opportunity
to attract capital for investment on reasonable terms.
   (e) The Legislature further finds and declares all of the
following:
   (1) Acting under applicable constitutional and statutory
authorities, the Public Utilities Commission and the boards of local
publicly owned electric utilities have included in regulated
electricity prices, investments that are essential to maintaining
system reliability, reducing California electricity users' bills, and
mitigating environmental costs of California users' electricity
consumption.
   (2) Among the most important of these "system benefits"
investments categories are energy efficiency, renewable energy, and
public interest research, development and demonstration (RD&D).
   (3) Energy efficiency investments funded from California's
usage-based charges on electricity distribution help improve
systemwide reliability by reducing demand in times and areas of
system congestion, and at the same time reduce all California
electricity users' costs.  These investments also significantly
reduce environmental costs associated with California's electricity
consumption, including, but not limited to, degradation of the state'
s air, water, and land resources.
   (4) California's in-state renewable energy resources help
alleviate supply deficits that could threaten electric system
reliability, reduce environmental costs associated with California's
electricity consumption, and increase the diversity of the
electricity system's fuel mix, reducing electricity users' exposure
to fossil-fuel price volatility.
   (5) California's public-interest research, development and
demonstration (RD&D) investments enhance private and regulated sector
investment in electricity system technologies, and are designed
specifically to help ensure sustained improvement in the economic and
environmental performance of the distribution, transmission, and
generation and end-use systems that serve California electricity
users.
   (6) California has established a long tradition of recovering
system benefits investments through usage-based electricity charges,
which is reflected in at least two decades of electricity price
regulation by the commission, the boards of local publicly owned
electric utilities, and the mandate of the Legislature in Chapter 854
of the Statutes of 1996 (Assembly Bill 1890 of the 1995-96 Regular
Session of the Legislature) and Chapter 905 of the Statutes of 1997
(Senate Bill 90 of the 1995-96 Regular Session of the Legislature).
   (7) Unless the Legislature acts to extend the mandate of Chapter
854 of the Statutes of 1996 for minimum levels of usage based system
benefits charges, California electricity users are at substantial
risk of higher economic and environmental costs and degraded
reliability.



399.1.  (a) As used in this article, the term "Energy Commission"
means the State Energy Resources Conservation and Development
Commission.
   (b) As used in this article, the term "local publicly owned
electric utility" has the same meaning as set forth in subdivision
(d) of Section 9604.


399.2.  (a) (1) It is the policy of this state, and the intent of
the Legislature, to reaffirm that each electrical corporation shall
continue to operate its electric distribution grid in its service
territory and shall do so in a safe, reliable, efficient, and
cost-effective manner.
   (2) In furtherance of this policy, it is the intent of the
Legislature that each electrical corporation shall continue to be
responsible for operating its own electric distribution grid
including, but not limited to, owning, controlling, operating,
managing, maintaining, planning, engineering, designing, and
constructing its own electric distribution grid, emergency response
and restoration, service connections, service turnons and turnoffs,
and service inquiries relating to the operation of its electric
distribution grid, subject to the commission's authority.
   (b) In order to ensure the continued efficient use, and
cost-effective, safe, and reliable operation of the electric
distribution grid, each electrical corporation shall continue to
operate its electric distribution grid in its service territory
consistent with Section 330.
   (c) In carrying out the purposes of this section, each electrical
corporation shall continue to make reasonable investments in its
electric distribution grid.  Each electrical corporation shall
continue to have a reasonable opportunity to fully recover from all
customers of the electrical corporation, in a manner determined by
the commission pursuant to this code, all of the following:
   (1) Reasonable investments in its electric distribution grid.
   (2) A reasonable return on the investments in its electric
distribution grid.
   (3) Reasonable costs to operate its electric distribution grid.
   (d) For purposes of this section, the term "electric distribution
grid" means those facilities owned or operated by an electrical
corporation that are not under the control of the Independent System
Operator and that are used to transmit, deliver, or furnish
electricity for light, heat, or power.
   (e) Nothing in this section shall be construed to alter or to
affect any of the following:
   (1) Section 216, 218, or 2827.
   (2) The authority of the commission to establish and enforce
standards and tariff conditions for the interconnection of
customer-owned facilities to the electric distribution grid.
   (3) The ratemaking authority of the commission under this code.
   (4) The authority of the commission to establish rules governing
the extension of service to new customers.
   (f) Nothing in this section shall be construed to alter or affect
any authority or lack of authority of the commission regarding the
ownership and operation of new electric generation used in whole, or
in part, for the purpose of maintaining or enhancing the reliability
of the electric distribution grid.
   (g) Nothing in this section diminishes or expands any existing
authority of a local governmental entity.
   (h) The commission shall require every electrical corporation
operating an electric distribution grid to inform all customers who
request residential service connections via telephone of the
availability of the California Alternative Rates for Energy (CARE)
program and how they may qualify for and obtain these services and
shall accept applications for the CARE program according to
procedures specified by the commission.  Electrical corporations
shall recover the reasonable costs of implementing this subdivision.



399.3.  Nothing in Section 399.2 shall be construed to preclude any
of California's local publicly owned electric utilities from
exercising authority to operate their electric distribution grid as
provided under law.


399.4.  (a) (1) In order to ensure that prudent investments in
energy efficiency continue to be made that produce cost-effective
energy savings, reduce customer demand, and contribute to the safe
and reliable operation of the electric distribution grid, it is the
policy of this state and the intent of the Legislature that the
commission shall continue to administer cost-effective energy
efficiency programs authorized pursuant to existing statutory
authority.
   (2) As used in this section, the term "energy efficiency"
includes, but is not limited to, cost-effective activities to achieve
peak load reduction that improve end-use efficiency, lower customers'
bills, and reduce system needs.
   (b) The commission, in evaluating energy efficiency investments
under its existing statutory authorities, shall also ensure both of
the following:
   (1) That local and regional interests, multifamily dwellings, and
energy service industry capabilities are incorporated into program
portfolio design and that local governments, community-based
organizations, and energy efficiency service providers are encouraged
to participate in program implementation where appropriate.
   (2) That no energy efficiency funds are used to provide incentives
for the purchase of new energy-efficient refrigerators.



399.9.  (a) No part of this article shall be construed to alter or
affect the low-income funding provisions set forth in Section 382.
Programs provided to low-income electricity customers, including but
not limited to, targeted energy efficiency services and the
California Alternative Rates for Energy Program shall continue to be
funded as set forth in Section 382.
   (b) Nothing in this article shall be construed to affect the
jurisdiction of the commission over electric distribution service.